Defense Department Invested $450 Million in Tungsten Firm

The funding aims to restore domestic production and secure critical supply chains ahead of new procurement rules.

Updated on Sept. 30, 2026 in Manufacturing

Defense Department Invested $450 Million in Tungsten Firm

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The Department of Defense has announced a $450 million investment in The Elmet Group to bolster U.S. tungsten production. This initiative prepares for a federal mandate taking effect in 2027 that will prohibit the use of tungsten sourced from adversarial nations.

Why it matters

The investment seeks to rebuild industrial capacity in the United States, which has not mined tungsten domestically since 2015. Strengthening this supply chain is critical as it supports more than 100 defense programs.

The Elmet Group will allocate $165 million to upgrade manufacturing facilities, $150 million to restart mining in Imlay, Nevada, and $100 million to build a new refining division. These investments address China's control of 85% of global tungsten.

The players

The Elmet Group

Headquartered in Portland, Maine, this company is the sole U.S.-owned fully integrated producer of tungsten and molybdenum.

Department of Defense

This federal executive department is responsible for coordinating and supervising all agencies and functions of the government related to national security and the U.S. armed forces.

Tungsten West

This is a mining firm that has entered into agreements to support the restoration of domestic tungsten extraction operations.

Masan High-Tech Materials Corporation

This organization is an industrial material supplier that has partnered with The Elmet Group to bolster domestic production capabilities.

The details

As the only fully integrated, U.S.-owned producer of tungsten and molybdenum, The Elmet Group serves as a vital supplier for defense programs. The company has finalized mining agreements with Tungsten West and Masan High-Tech Materials Corporation to facilitate the operational expansion across Maine, Michigan, and Ohio.

The Elmet Group was founded in 1929.
Domestic tungsten mining in the United States ceased in 2015.
The Elmet Group completed its initial public offering in 2026.
The Department of Defense announced the $450 million investment in September 2026.
A federal procurement rule barring tungsten from specific nations takes effect January 1, 2027.

Market Landscape

This investment marks a strategic effort to insulate the domestic defense industry from global supply chain risks dominated by foreign nations. By incentivizing internal production, the government is shifting the market landscape away from its current reliance on Chinese imports.

For the average American, this development reduces the long-term risk of national security disruptions caused by foreign supply chain reliance. While it does not change retail prices immediately, it secures the underlying components necessary for defense programs that protect the public.

The takeaway

The move underscores a broader strategic pivot toward localized manufacturing for critical materials. Developing domestic supply chains is essential to maintaining technological and military independence in a competitive global market.